Business News

Robots and happy workers: Productivity surge helps explain US economy’s surprising resilience

WASHINGTON (AP) — Across the United States, chronic worker shortages have led many companies to invest in machines to do some of the work they can’t find people to do. They’ve also been training the workers they do have to use advanced technology so they can produce more with less. The result has been an unexpected productivity boom, which helps explain a great economic mystery: How has the world’s largest economy managed to remain so healthy, with brisk growth and low unemployment, despite brutally high interest rates that are intended to tame inflation but that typically cause a recession?

Biden is boosting cybersecurity at US ports, where online attacks can be more ravaging than storms

WASHINGTON (AP) — President Joe Biden has signed an executive order and created a federal rule aimed at better securing the nation’s ports from potential cyberattacks. The administration is outlining Wednesday a set of cybersecurity regulations that port operators must comply with across the country, not unlike standardized safety regulations that seek to prevent injury or damage to people and infrastructure. The new requirements are part of the federal government’s focus on modernizing how critical infrastructure like power grids, ports and pipelines are protected. They are increasingly managed and controlled online but there is no set of nationwide standards that govern how operators should protect against potential attacks online.

White House wades into debate on ‘open’ versus ‘closed’ artificial intelligence systems

The Biden administration is wading into a contentious debate about whether the most powerful artificial intelligence systems should be “open-source” or closed. The White House said Wednesday it is seeking public comment on the risks and benefits of having an AI system’s key components publicly available for anyone to use and modify. The inquiry is one piece of the broader executive order that President Joe Biden signed in October to manage the fast-evolving technology. Tech companies are divided on how open they make their AI models, with some emphasizing the dangers of widely accessible AI model components and others stressing that open science is important for researchers and startups.

Germany says Europe’s largest economy is in ‘troubled waters’ and cuts its growth forecast

FRANKFURT, Germany (AP) — The German government says Europe’s largest economy is in “troubled waters.” It’s slashing its growth forecast for this year as it struggles with a lack of skilled labor, excessive bureaucracy, high interest rates and lagging investment in new projects. Meanwhile, a relatively modest set of tax breaks for business remains blocked in the legislature. The growth forecast was lowered to 0.2% from the previous forecast of 1.3%. That would follow a shrinking of the economy by 0.3% for all of last year. Germany is recovering slowly from the shock of Russia cutting off most natural gas supplies after its invasion of Ukraine.

The number of short-term rentals in Puerto Rico has surged. A new report says that’s a problem

SAN JUAN, Puerto Rico (AP) — A new report says activists want stricter regulations of short-term rentals in Puerto Rico as the U.S. territory sees a growing number of displaced renters and a spike in housing costs. The report says the number of units operating as short-term rentals in Puerto Rico jumped to more than 25,000 in 2022 from about 1,000 in 2014. Renters have faced evictions, the cost of goods have increased and some ecological areas have been destroyed during new construction. A key factor in the increase of short-term rentals was the aftermath of Hurricane Maria in 2017, when new investors came to buy homes and properties.

Americans’ reliance on credit cards is the key to Capital One’s bid for Discover

NEW YORK (AP) — Americans have become increasingly reliant on their credit cards since the pandemic. So much so that Capital One is willing to bet more than $30 billion that they won’t break the habit. The combination could potentially shake up the payments industry, which is largely dominated by Visa and Mastercard. For customers of the companies, it might mean bigger perks and more merchant acceptance of Discover cards, and potentially lead to more competition in the payments industry. But most of the benefits will be going to the companies themselves, as well as the merchants who accept these cards.

Amazon to be added to the Dow Jones Industrial Average, replacing Walgreens Boots Alliance

NEW YORK (AP) — Amazon.com Inc. is being added to the Dow Jones Industrial Average, joining Apple, Walt Disney, Walmart and other companies that make up the 30-stock average. S&P Dow Jones Indices said Tuesday that the e-commerce giant will replace drugstore operator Walgreens Boots Alliance in the Dow before the open of trading on Monday. The shift was prompted by Walmart’s decision to do a 3-to-1 stock split, which will reduce its stock’s weighting in the index. The Dow is a price-weighted index, so stocks that fetch higher prices are given more weight. Meanwhile, ride-sharing service Uber Technologies will be added to the Dow Jones Transportation Average, replacing JetBlue Airways.

FuboTV files lawsuit over ESPN, Fox, Hulu, Warner Bros. Discovery sports-streaming venture

Streaming service FuboTV has filed an antitrust lawsuit against ESPN, Fox, Warner Bros. Discovery and Hulu, which are planning to launch a sports-streaming venture in the fall. The lawsuit has been filed in the Southern District of New York. FuboTV is seeking a jury trial. FuboTV not only wants the proposed joint venture shut down, but it is seeking cash damages. If the court does not rule to do either, FuboTV is seeking restrictions on the joint venture so that competition remains in the marketplace. The streaming services declined to comment. The Wall Street Journal was the first to report on the lawsuit.

EU agrees on new sanctions against Russia days before the second anniversary of the war in Ukraine

BRUSSELS (AP) — European Union countries have agreed on a new package of sanctions against Russia. The decision on Wednesday coincides with the second anniversary of Russia’s full-scale invasion and comes days after the death of Russian opposition leader Alexei Navalny. The measures target individuals and businesses suspected of assisting Moscow in its war against Ukraine including Chinese companies. Belgium currently holds the rotating presidency of the 27-nation bloc and says the package is one of the broadest approved by the EU. Several diplomats said that EU ambassadors from all member countries agreed to sanction about 200 companies and individuals. The EU has imposed several rounds of sanctions on Russia since President Vladimir Putin ordered his troops into Ukraine almost two years ago.

Can a healthier plant-based burger combat falling US sales? Beyond Meat hopes so

Beyond Meat is revamping its signature plant-based burger, hoping that healthier ingredients will help it boost flagging U.S. sales. The El Segundo, California-based company said Wednesday its new Beyond Burger patties and Beyond Beef grounds cut saturated fat by 60% by switching from canola and coconut oils to avocado oil. The new beef products also have less sodium and more protein. The new products go on sale in the U.S. this spring. Beyond Meat has updated its products before, but Beyond Meat Founder and CEO Ethan Brown said this is the biggest leap forward the brand has made since the Beyond Burger went on sale in 2016.